Hi! In this series of posts, I will share with you a compilation of concepts, theories, models, books, and anything that’s related to Innovation and Entrepreneurship. The compilation will be useful to CMAT aspirants and MBA aspirants in general. Innovation and Entrepreneurship is a new section that’s been introduced in CMAT this year. I hope this series saves some crucial time and helps in last minute push-ups! 🙂
51. Thinking, Fast and Slow – A best-selling 2011 book by Nobel Memorial Prize winner in Economics Daniel Kahneman which summarizes research that he conducted over decades, often in collaboration with Amos Tversky. The book’s central thesis is a dichotomy between two modes of thought: “System 1” is fast, instinctive and emotional; “System 2” is slower, more deliberative, and more logical.
52. Business process re-engineering – A business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.
53. The Fifth Discipline: The Art and Practice of the Learning Organization – A book by Peter Senge focusing on group problem solving using the systems thinking method in order to convert companies into learning organizations. The five disciplines are “Personal mastery”, “Mental models”, “Building shared vision”, “Team learning”, “Systems thinking”.
54. T. V. Rao – Also regarded as “The Father of Indian HRD”. Dr. Rao is also the founder president of the National HRD Network and the Indian Society for Applied Behavioral Sciences (ISABS).
55. Michael Porter – A Professor at The Institute for Strategy and Competitiveness, based at the Harvard Business School. Michael Porter is the author of 18 books and numerous articles including Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations, and On Competition. Professor Porter is the most cited author in business and economics.
56. Kenneth Blanchard – American author and management expert known for his book The One Minute Manager (co-authored with Spencer Johnson).
57. C. K. Prahalad – A professor of Corporate Strategy who was frequently ranked as one of the most prominent business thinkers in the world. He was renowned as the co-author of “Core Competence of the Corporation” and “The Fortune at the Bottom of the Pyramid.”
58. Departmentalization – The grouping of related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner.
59. Delegation – The process that makes management possible because management is the process of getting results accomplished through others. Delegation is the work a manager performs to entrust others with responsibility and authority and to create accountability for results. It is an activity of the organizing function.
60. Scalar principle – Also known as chain of command, this represents a clear definition of authority in the organization. This authority flows down the chain of command from the top level to the first or lowest level in the organization.
61. Centralization and Decentralization – Centralization occurs in an organization when a limited amount of authority is delegated and Decentralization occurs when a significant amount of authority is delegated to lower levels in the organization.
62. Peter Drucker – Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation. He was also a leader in the development of management education, he invented the concept known as management by objectives, and he has been described as “the founder of modern management”. As per Peter Drucker, enterprise has two–and only two–basic functions: Marketing and Innovation.
63. McJob (sometimes called Joe job) – A slang for a low-paying, low-prestige dead-end job that requires few skills and offers very little chance of intra-company advancement. The term McJob comes from the name of the fast-food restaurant McDonald’s, but is used to describe any low-status job – regardless of the employer – where little training is required, staff turnover is high, and workers’ activities are tightly regulated by managers.
64. Intrapreneurship – The act of behaving like an entrepreneur while working within a large organization.
65. Need theory, also known as Three Needs Theory – It was created by psychologist David McClelland, is a motivational model that attempts to explain how the needs for achievement, power, and affiliation affect the actions of people from a managerial context.
66. A golden parachute – An agreement between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated. The benefits may include severance pay, cash bonuses, stock options, or other benefits.
67. A golden handshake – A clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an accelerated vesting of stock options.
68. Golden handcuffs – A system of financial incentives designed to keep an employee from leaving the company. These can include employee stock options that will not vest for several years, but are more often contractual obligations to give back lucrative bonuses or other compensation if the employee leaves for another company.
69. Golden boot compensation – Also known as the ‘Golden Boot’, is an inducement, using maximum incentives and financial benefits, for an older worker to take “voluntary” early retirement.
70. Donald Kirkpatrick – He is best known for creating a highly influential ‘four level’ model for training course evaluation, which served as the subject of his Ph.D. dissertation in 1954. The four levels of Kirkpatrick’s evaluation model are as follows: Reaction, Learning, Behavior, Results.
71. T-group or training group – It is a form of group training where participants learn about themselves through their interaction with each other. They use feedback, problem solving, and role play to gain insights into themselves, others, and groups.
72. Porter five forces analysis – A framework to analyze level of competition within an industry and business strategy development. This analysis is associated with its principal innovator Michael E. Porter of Harvard University. Porter’s five forces include – three forces from ‘horizontal’ competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from ‘vertical’ competition: the bargaining power of suppliers and the bargaining power of customers.
73. Zero to One: Notes on Startups, or How to Build the Future – A 2014 book by the American entrepreneur and investor Peter Thiel which is considered one of the best business books. The term ‘zero to one’ is now used to indicate an act of creation of a start-up or a new product.
74. The Johari window – A technique created in 1955 by two American psychologists, Joseph Luft (1916–2014) and Harrington Ingham (1914–1995), used to help people better understand their relationship with self and others. It is used primarily in self-help groups and corporate settings as a heuristic exercise and has four areas: Open or Arena, Hidden or Façade, Blind Spot, Unknown.
75. Blind Ads – Recruitment advertisements that do not have the name or identity of the Employer.
To read the next part, click here: CMAT – Innovation and Entrepreneurship – Part 4
Hope this helps! The new post will be up in a few hours and the entire series will be available by Sunday (March 28th EOD). Please give your feedback in the comments section. Do share with your friends and co-aspirants. Happy prepping! 🙂